International Cost of Capital Module

Estimating cost of capital in developed countries, where a relative abundance of market data and comparable companies exist, requires a high degree of expertise. Estimating cost of capital in less-developed countries (i.e., “emerging markets”) can present greater challenges, primarily due to lack of data and the potential indicators for increased financial, economic and political risks. The International Cost of Capital Module provides a simplified framework to mitigate the challenges of valuing a business across countries. The International Module includes three models to assess country risk, alternatives when local country inputs are not available or reliable, and advanced guidance and documentation. Outlined below is a global country risk map illustrating risk across countries, as well as summary country risk data by region from various country risk models used in the module.

Country-level Data Includes

• Country risk premia (CRPs) for over 175 countries
• Relative volatility (RV) factors for over 70 countries
• Global equity risk premia and risk-free rates
• International industry-level betas (Pro only)
• Long-term inflation expectations
• Full country risk premia tables by country (Pro only)